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U.S. Department of Education: Promoting Educational Excellence for all Americans
Statute: TITLE I / B / 612 / a / 5 / B / i

(i) In general.--A State funding mechanism shall not result in placements that violate the requirements of subparagraph (A), and a State shall not use a funding mechanism by which the State distributes funds on the basis of the type of setting in which a child is served that will result in the failure to provide a child with a disability a free appropriate public education according to the unique needs of the child as described in the child's IEP.